Company taxation: The European Commission
welcomes the adoption by the Council of a Code of Conduct on transfer pricing
documentation

The Code of Conduct will standardise the documentation that companies
must provide to tax authorities on their pricing of cross-border intra-group
transactions ("transfer pricing" documentation). It will reduce significantly
the tax complications that companies face when trading with associated
enterprises in other Member States and, at the same time, facilitate the work of
tax administrations by increased transparency regarding the group's transfer
prices. It should also reduce the risk for businesses of double taxation and
exposure to documentation related penalties. The Code is a political commitment
but will not affect the Member States' rights and obligations or the respective
spheres of competence of the Member States and the European Union. Member States
have now to implement the Code as soon as possible in their legislation or
administrative practices.

"I am very pleased that Member States have adopted this Code of Conduct that
will ensure greater certainty and reduced compliance costs and risks of
documentation-related penalties for multinationals" said Taxation Commissioner
Lázló Kovács. "I now urge Member States to implement the Code as
soon as possible in their national legislation or administrative practices".